Hillenbrand Inc., which bought Milacron Holdings Corp. last year, is selling Milacron's metalcutting fluids business, Cimcool — and will use the proceeds to pay down debt from the Milacron deal.
Hillenbrand announced March 20 that Milacron has agreed to sell Cimcool to DuBois Chemicals Inc., a specialty chemicals supplier. Hillenbrand, which is traded on the New York Stock Exchange, had said it was looking for strategic alternatives for Cimcool when it completed the $1.9 billion purchase of Milacron last November.
DuBois Chemicals will pay about $224 million in cash for Cimcool. DuBois has agreed to pay up to another $26 million in a contingent purchase price upon any future sale of the combined DuBois and Cimcool businesses, subject to certain conditions.
The deal is expected to close March 30.
"The divestiture of Cimcool aligns with our previously disclosed intent to seek strategic alternatives for the business and allows us to remain focused on the continued integration of the Milacron ... businesses with Hillenbrand," President and CEO Joe Raver said. "The proceeds from the sale will be used for de-leveraging activities, strengthening our financial position as we seek to enhance our leadership position in the industrial platforms that represent our most compelling opportunities for profitable growth."
Hillenbrand is based in Batesville, Ind. DuBois Chemicals is headquartered in Cincinnati.